PRECISION DRILLING CORPORATION February 2026 - Investor Presentation FORWARD-LOOKING STATEMENT Certain statements contained in this report, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend", "plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities ...

Core Insights - Helmerich & Payne reported $1.0 billion in revenue for the fiscal first quarter of 2026, marking the third consecutive quarter at this revenue level, despite a net loss of $0.98 per diluted share due to a $103 million non-cash impairment charge and other unusual items [1][6] Financial Performance - Adjusted EBITDA was $230 million, exceeding expectations, supported by strong results in North America Solutions and Offshore Solutions, as well as better-than-anticipated performance in International Solutions [2][6] - The company generated strong free cash flow of $126 million, with capital expenditures of $68 million for the quarter, and reduced its fiscal year capex guidance to $270–310 million [4][7][19] Operational Highlights - North America Solutions averaged 143 rigs working, with a direct margin of $239 million, driven by a higher rig count and gross margin above $18,000 per day [8] - International Solutions outperformed expectations with 59 rigs working and direct margins of approximately $29 million, attributed to lower-than-expected Saudi reactivation costs [9] - Offshore Solutions generated about $31 million in direct margin with 3 active rigs, maintaining stable operations [10] Market Outlook - The company anticipates a sequential margin step-down in the second quarter due to seasonal impacts and the timing of rig reactivation costs, with North America Solutions margins expected to range from $205 million to $230 million [5][16] - International Solutions is projected to average 57 to 63 rigs in the second quarter, with direct margins of $12 million to $22 million, reflecting the shifting of Saudi reactivation costs [17] - Offshore Solutions is expected to average 30 to 35 operating rigs, with second-quarter direct margin guidance of $20 million to $30 million [18] Strategic Initiatives - The company is focusing on FlexRobotics technology to automate rig floor tasks, which has shown promising results in initial deployments [15] - Geothermal interest remains high, with contract awards in Europe and additional rigs added in North America [14] Leadership Transition - CEO John Lindsay will be succeeded by Trey Adams next month, with Lindsay expressing confidence in the leadership team to execute the company's strategy [4][20]

Core Viewpoint - Precision Drilling Corporation has reported strong financial performance and disciplined capital allocation, achieving its 2025 debt reduction target and maintaining a robust liquidity position [2][3][4]. Financial Performance - In 2025, Precision reduced its debt by $101 million, achieving its annual debt reduction goal, ending the year with a cash balance of approximately $85 million and total available liquidity of approximately $447 million [3]. - The company has reduced its debt by $535 million over the past four years and aims to reach a sustained Net Debt to Adjusted EBITDA leverage ratio of below 1.0 times [4]. - Precision returned $76 million to shareholders through share repurchases in 2025, meeting its target of allocating 35% to 45% of free cash flow before debt repayments to share buybacks [5]. Capital Allocation Strategy - Precision has allocated $1.7 billion of its free cash flow to debt repayments and share buybacks over the past decade, while investing over $1.5 billion in its fleet and completing two acquisitions [6]. - The company plans to further reduce debt and increase share buyback allocation in 2026, with specific capital allocation plans to be provided in February [7]. Operational Update - Precision's average active rig count in Canada remained robust at 66, with expectations to peak at 87 during the winter drilling season [10]. - In the U.S., the company averaged 37 rigs in the fourth quarter, with a 21% increase in the natural gas rig count in 2025 [11]. - Internationally, Precision expects to maintain seven active rigs throughout 2026, supported by long-term contracts [12]. CEO Commentary - The CEO highlighted the substantial free cash flow generated in 2025, which allowed the company to meet its debt reduction and share repurchase targets while upgrading rigs to meet customer needs [14].

Core Viewpoint - Precision Drilling Corporation reported its third quarter 2025 results, highlighting a resilient performance despite a challenging North American drilling market, with a focus on shareholder returns and fleet investments to meet customer demand [2][4][10]. Financial Highlights - Revenue for Q3 2025 was $462 million, a 3% decrease from $477 million in Q3 2024, outperforming industry declines of 15% in Canada and 7% in the U.S. [7][18]. - Adjusted EBITDA was $118 million, down 17.4% from $142 million in Q3 2024, impacted by higher operating costs and share-based compensation [7][18]. - Net earnings attributable to shareholders were a loss of $7 million, compared to a profit of $39 million in Q3 2024, primarily due to increased deferred income tax expenses [7][18]. - Cash provided by operations was $76 million, enabling the company to repay $10 million of debt and repurchase $9 million of common shares [7][18]. - Capital expenditures for Q3 2025 were $69 million, with a revised 2025 capital budget increased to $260 million from $240 million [7][18]. Operational Highlights - The company operated 68 drilling rigs in Canada, with strong demand for Super Triple and Super Single rig classes, expecting near full utilization during the winter season [6][10]. - U.S. activity increased by over 10% year-over-year, with 39 active rigs compared to 30 in Q1 2025, driven by strength in natural gas basins [8][26]. - International operations averaged seven active rigs, generating stable free cash flow [9][27]. Market Positioning - Precision's favorable positioning in U.S. natural gas and Canadian heavy oil markets, combined with technical expertise, has allowed the company to capture opportunities for capital deployment [4][10]. - The company plans to allocate 35% to 45% of free cash flow to share repurchases, having already repurchased $54 million in shares year-to-date [11][23]. Strategic Outlook - The company anticipates strong demand for its North American Super Series rigs, with expectations for winter drilling activity to meet or exceed last year's levels [25][29]. - In the U.S., the natural gas rig count has increased approximately 20% year-to-date, reflecting positive customer sentiment towards LNG off-take and AI demand [26][29]. - Internationally, the company maintains long-term contracts for its rigs, with expectations for stable operations through 2027 and 2028 [27][29].

Core Viewpoint - Precision Drilling Corporation reported its third quarter results for 2025, highlighting a strong operational performance despite a challenging North American drilling market, with a focus on shareholder returns and fleet enhancements to meet customer demand [2][4][10]. Financial Highlights - Revenue for Q3 2025 was $462 million, a decrease of 3.1% from $477 million in Q3 2024, outperforming industry declines of 15% in Canada and 7% in the U.S. [8][13]. - Adjusted EBITDA was $118 million, down 17.4% from $142 million in the same quarter last year, primarily due to increased operating costs and share-based compensation [8][13]. - Net earnings attributable to shareholders were a loss of $7 million, compared to a profit of $39 million in Q3 2024, reflecting higher deferred income tax expenses [8][13]. - Cash provided by operations was $76 million, enabling the company to repay $10 million of debt and repurchase $9 million of common shares [8][11]. Operational Highlights - The company operated 68 drilling rigs in Canada and 39 in the U.S., with Canadian Super Triple and Super Single rig classes showing robust demand [6][7]. - U.S. activity increased by over 10% year-over-year, particularly in natural gas basins like Haynesville and Marcellus, despite a general decline in the North American drilling market [5][26]. - Canadian revenue per utilization day rose to $34,193, up from $32,325, while U.S. revenue per utilization day decreased to US$31,040 from US$32,949 [8][14]. Capital Expenditures and Debt Management - Capital expenditures for Q3 2025 were $69 million, with an increase in the capital budget for 2025 from $240 million to $260 million, driven by customer-funded upgrades [8][10]. - The company reduced long-term debt by over $100 million as of the end of Q3 2025, achieving its annual debt reduction target [11][25]. Strategic Outlook - The company remains optimistic about the winter drilling season in Canada, expecting activity levels to meet or exceed last year's performance, contingent on supportive commodity prices [24][29]. - Precision's strategy includes maximizing free cash flow, enhancing shareholder returns through debt reduction and share repurchases, and growing revenue through contracted upgrades and optimized pricing [25][21].

Group 1 - Helmerich & Payne, Inc. (NYSE:HP) experienced a share price increase of 4.52% from September 25 to October 2, 2025, ranking among the top gaining energy stocks for the week [1] - The company provides drilling solutions and technologies for oil and gas exploration and production companies [2] - Barclays upgraded Helmerich & Payne's stock from 'Equal Weight' to 'Overweight' and raised its price target from $17 to $25, indicating a belief that the worst is over for the company and suggesting a potential recovery [3] Group 2 - The company announced leadership restructuring, promoting Raymond John Adams III to President, overseeing all revenue-generating business units [4]

Core Points - Unit Corporation has signed and closed a definitive agreement to sell its wholly-owned contract drilling subsidiary, Unit Drilling Company, to Cactus Drilling Company, L.L.C. for an all-cash deal valued at $120 million [1] - The transaction was approved by the board of directors upon the unanimous recommendation of the strategic transactions committee, which consisted of independent directors [1] Financial Details - The sale price for Unit Drilling Company is $120 million, indicating a significant cash inflow for Unit Corporation [1]

Financial Highlights - Precision Drilling anticipates a robust 2025 free cash flow yield potential of 25%[10, 11] - Analyst estimates for 2025 free cash flow are $226 million, against an equity market cap of $921 million[12] - The company aims to reduce total debt by at least $100 million in 2025[19, 23] - The long-term debt reduction target is increased to $700 million from 2022-2027, with $452 million already paid as of March 31, 2025[19, 23] - The company is on track to achieve a Net Debt to Adjusted EBITDA ratio of less than 10x[23] Operational Performance - Precision Drilling is the 1 land driller in Canada with 98 highly desirable rigs and a top land driller in the US with 104 rigs (66 Super Spec)[9] - The company is also the 1 well service provider in Canada with 153 rigs[9] - Canadian day rate margins have increased by 67% over the last 3 years[51] - US day rate margins have increased by over 60% in the last 3 years[66] - In Canada, Precision's Super Triples & Super Singles are nearly fully utilized[23] Strategic Priorities - Maximize free cash flow and enhance shareholder returns are key strategic priorities for 2025[18] - The company plans to allocate 35-45% of free cash flow to share repurchases in 2025, moving towards 50% of free cash flow for direct shareholder returns[19] - Grow revenue in existing service lines through disciplined capital deployment, strict cost management, and opportunistic tuck-in acquisitions[19, 20]

Company Overview - Total Energy Services Inc. is headquartered in Calgary, Alberta, and provides contract drilling services, equipment rentals, transportation services, well servicing, and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia [4]. Financial Results Announcement - Total Energy will conduct a conference call and webcast following the release of its financial results for the three months ended June 30, 2025 [1]. - The financial results will be released prior to the conference call, which is scheduled for August 6, 2025, at 9:00 a.m. (Mountain Time) [2]. Access to Conference Call - The conference call can be accessed by dialing (833) 752-3851 or (647) 846-8915 [2]. - A live webcast of the conference call will be available on Total Energy's website, and an archived version will be accessible shortly after the live event [3]. Contact Information - For further information, inquiries can be directed to Yuliya Gorbach, Vice-President Finance and Chief Financial Officer, at (403) 216-3920 or via email at investorrelations@totalenergy.ca [5].

Financial Highlights - Precision Drilling anticipates a free cash flow yield potential of approximately 25% in 2025[11] - Analyst estimates for 2025 free cash flow are $226 million, against an equity market cap of $937 million, resulting in an estimated FCF yield of 24%[12] - The company aims to reduce total debt by at least $100 million in 2025[19] - A long-term debt reduction target has been increased to $700 million from 2022-2027, with $452 million already paid as of March 31, 2025[23] Operational Performance - Precision Drilling is the 1 land driller in Canada with 98 highly desirable rigs and a top land driller in the US with 104 rigs (66 Super Spec)[9] - The company is also the 1 well service provider in Canada with 153 rigs[9] - Canadian day rate margins have increased by 67% over the last 3 years[51] - US day rate margins have increased by over 60% in the last 3 years[66] Strategic Priorities - Maximize free cash flow and enhance shareholder returns are key strategic priorities for 2025[18] - The company plans to allocate 35%-45% of free cash flow to share repurchases in 2025 and is moving towards 50% of free cash flow for direct shareholder returns[19] - The company is focused on growing revenue in existing service lines through disciplined capital deployment, strict cost management, and opportunistic consolidating tuck-in acquisitions[19, 20]